Bank of China contributes $40 million USD to $1.5 billion USD syndicated revolving credit facility (RCF) to Baxter International for general corporate purposes in 2011 (Linked to Record ID#103506)

Project narrative

On June 17, 2011, financial close was reached on a deal in which a syndicate of 16 banks — including the New York Branch of Bank of China (BOC) — entered into a $1.5 billion USD syndicated revolving credit facility (RCF) agreement with Baxter International — an American multinational healthcare company that primarily focuses on products to treat kidney disease and other chronic and acute medical conditions — for general corporate purposes. This loan has a maturity of 4 years. This RCF replaces an older loan with the same value in 2006 (without Chinese bank commitment). The RCF has a variable interest rate based on each drawdown and is determined by the LIBOR Market Rate Spread, the thirty-day moving average of the Borrower’s interpolated four-year credit default swap mid-rate spread (as provided by Markit Group Limited or another similar financial services company selected by the Administrative Agent and approved by the Borrower (which approval shall not be unreasonably withheld or delayed) for the four-year period beginning on the date on which the LIBOR Market Rate Spread has most recently been set. The Borrower also agrees to pay for the account of each Bank a facility fee at the respective rates per annum. The applicable rate for any period shall be determined based on the publicly announced ratings ("Credit Ratings") by Moody’s, S&P and Fitch on the Borrower’s senior unsecured Debentures during such period, the applicable rate to change when and as such Credit Ratings change. As of June 2021, the facility fee based on the ratings is 0.08%. The proceeds of the RCF are used for general corporate purposes and supporting its commercial paper program (a short-term, unsecured debt obligation that is issued by financial institutions and large corporations as an alternative to costlier methods of funding). While Bank of China contributed $40 million USD to this loan, the following 15 lenders contributed to the loan: Bank of America, N.A.(Syndication Agent, $175 million), JPMorgan Chase Bank, N.A.(Administrative Agent, $175 million), UBS Loan Finance LLC ($130 million), Deutsche Bank AG New York Branch ($175 million), Royal Bank of Scotland, PLC ($112,500,000), Barclays Bank PLC ($55 million), The Bank of Tokyo-Mitsubishi UFJ, Ltd. ($55 million), Credit Suisse, Cayman Island Branch ($112,500,000), Citibank, N.A.(Syndication Agent, $175 million), HSBC Bank USA, National Association ($55 million), Goldman Sachs Bank USA ($130 million), Mizuho Corporate Bank (USA) ($55 million), The Toronto-Dominion (Texas) LLC ($40 million), The Bank of New York Mellon ($40 million), and State Street Bank and Trust Company ($20 million). In addition, J.P.Morgan Securities LLC, Merrill Lynch, Fenner & Smith Incorporated and Citigroup Global Markets Inc. acted as co-lead arrangers and joint bookrunners. This loan is replaced by a loan of similar value in 2015 (See Record ID#103506).